Invoice vs receipt: when to send which

An invoice asks for payment

It is issued before or at the same time as the payment is expected, and it states the amount owed, the due date and the payment details. It creates the obligation to pay and gives the client something to file, approve and schedule.

A receipt confirms payment

It is issued after the money has arrived, and it records the fact, the date, the amount and the method. It does not ask for anything, which is why it typically has no due date and no payment terms.

What each one must show

• Invoice: your details, the client, invoice number, dates, line items, tax, total, payment terms
• Receipt: paid amount, date paid, method, and the invoice number it settles
• Both: a clear reference so the two documents can be matched in an audit

Deposits and part payments

A deposit is invoiced first and receipted when it lands. When the work finishes, invoice the full project, then subtract the deposit already paid and show the balance due — the client sees one project total and one amount still owed. Issuing a receipt for the deposit alone is not a substitute for the final invoice.

Where marketplaces and card processors fit

A marketplace payment notification, or a card processor’s payout report, is neither an invoice nor a receipt in the accounting sense. Sellers who need clean records usually re-issue their own invoice per order, and mark it paid once the payout settles.

Tax wording differs by country

Some countries require receipts to carry a tax registration number or a specific phrase, and some require the word “receipt” itself. When in doubt issue both documents with a matching number, and keep the pair.